China's Caixin PMI declines to a 6 1/2 year low

Wednesday, September 23, 2015

Caixin’s China manufacturing PMI declined to 47.0 in September from 47.3 in August, missing analysts’ expectations of 47.5 and hitting a 6 ½ year low. The disappointing manufacturing data verified the recent slowdown of the Chinese economy and weighed on market sentiment. The Hang Seng index plunged over 550 points (-2.50%) towards 21,200, while the Shanghai Composite index declined over 2% to retest 3,100.  Furthermore, Shanghai copper declined nearly 4% towards RMB38,660, while aluminium posted limited losses and ended lower at RMB11,780 (-0.63%).

Hang Seng index declines towards 21,300.

HSI Index (Hong Kong Hang Seng I 2015-09-23 09-07-33

Precious metals rebounded and climbed higher this morning. Gold has climbed towards $1130/ounce and silver rebounded towards the key area of $15. Platinum and palladium extended gains, adding 0.50% and 1.80%, respectively in early trade. The USD index continued its strong uptrend and extended gains for a fourth consecutive session, trading around 96.40 against a basket of currencies.

The Brazilian Real hit a two-decade low against the USD, after hovering around 4.0600 as the political issues in Latin America’s largest economy are deepening causing high uncertainty and nervous trading conditions. It seems that even Brazil’s central bank intervention has failed to support the currency's fall over the last few months.

The Dutch economy grew by 0.2% in Q2 2015, beating analysts’’ estimates of a 0.1% rise. The French economy grew by 1.1% y/y in Q2 201, beating estimates of 1.0%. France’s Markit manufacturing PMI increased to 50.4 in September from 48.3 in August, while Germany’s Markit manufacturing PMI was reported at 52.5 in September, fairly inline with expectations. European equity markets posted fresh gains this morning as the DAX, CAC and London equity benchmark indices gained between 0.20% and 0.50%. The IBEX index remains under some pressure as investors are cautious ahead of Catalonia’s elections this weekend. The euro has slightly rebounded and edged higher towards 1.1150 following three consecutive sessions of sharp losses.                   

 

Events for today:

0245

CN

Sep

Caixin Manufacturing PMI

0830

DE

Sep

Markit Mfg & Services PMI

0900

EZ

Sep

Markit Mfg & Services PMI

1445

US

Sep

Markit Manufacturing PMI

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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